Oil and Gas Glossary: S Terms
21 oil and gas terms start with the letter S. Each one is defined below, in alphabetical order.
Salt Water Disposal Well, SWD
Well used for the purpose of injecting produced water back into the ground.
Secondary Recovery
Enhanced recovery of oil or gas from a reservoir beyond the oil or gas that can be recovered by normal flowing and pumping operations. Secondary recovery techniques involve maintaining or enhancing reservoir pressure by injecting water, gas, CO2 or other substances into the formation.
Sedimentary Rock
Rock made up of aggregated sediments.
Separator
Apparatus that separates oil, gases, and water contained in the effluent from a production well.
Severance
The separation of a mineral or royalty interest from other interests in that land.
Severance Tax
A state tax levied against both royalty and working interest owners upon their pro rata share of oil and gas production. Each state sets its own severance tax rates, and often have special provisions for low rate wells, secondary recovery wells, etc.
Severed Minerals
Minerals whose title has been severed from the surface title.
Shut In Royalty
Payment to royalty owners under the terms of a lease which allows the lessee to defer production from a well capable of producing but shut in for lack of a market.
Sight Draft
Often referred to as a bank draft (or even 30 day sight draft) is an instrument guaranteeing payment to a party within a certain time window, so long as certain conditions are met. Usually, the leasing company uses that period to confirm title ownership.
Sour Gas, H2S
Any natural gas containing more than 1-1/2 grains of hydrogen sulfide per 100 cubic feet or more than 30 grains of total sulfur per 100 cubic feet.
Spot Market
Short term, non-regulated, arms length contract sales of natural gas or crude oil.
Stripper Well
A mature well which is at or toward the end of its economic life.
Structural Trap
An underground fold or break (or both) which creates an impervious trap where oil and gas can accumulate. Oil will migrate underground through rock until it is “trapped”.
Substandard Acreage
Amount of acreage that is less than the standard amount for a proration unit for a field.
Surface Casing
Outer casing cemented in the upper portion of the well bore to protect fresh water formations from contamination.
Surface Estate
Rights and interests in the surface of land as opposed to the mineral estate.
Surface Owner
Owner of the rights and interests in a surface estate.
Surface Rights
The set of rights associated with the surface of the land only, as differentiated from mineral rights.
Suspended Funds
Money that is held by the operator until certain requirements are met. This often happens when a change in title has taken place.
Swab, Swabbing
The process of mechanically pulling (or lifting) liquids from a well bore.
Sweet Gas
Natural gas not containing hydrogen sulfide.